Each country has a unique economic system to allocate its scarce resources. However, the economic system of most of the world's nations are a combination of the central planning external planning internal planning central planning system and the conditional tariff price conditional system.

Question

Jerry Meyer

Business

18 November, 17:43

Each country has a unique economic system to allocate its scarce resources. However, the economic system of most of the world's nations are a combination of the central planning external planning internal planning central planning system and the conditional tariff price conditional system.

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Answers (1)

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Andrew Allen · Answer 1

The answer are: ... are a combination of the central planning system and the price system.

Explanation:

Every economy in the world is a mixture of capitalism and socialism. In capitalism the fee market is absolute king, it sets prices and supply and demand of products. In socialist countries the government plans the economy and decides supply and demand of goods and services.

No country is purely capitalist since taxes exist and the government always intervenes with regulations and public services, etc. No country is purely socialist either, not even North Korea, since all the economies need to trade with their neighbors and people will always want to prosper.

So countries try to manage their economies in a mixture, some are more capitalist like the US and Canada, and some are more socialist like North Korea and Venezuela. The EU is sort of in the middle of both ideologies.